Wednesday, 11 May 2016

The Reserve Bank of Zimbabwe (RBZ) has assured the business community
that it has no appetite to print bond notes beyond the $200 million
facility.

Following concerns and fears from the local market on
whether the Apex Bank will not print more bond notes, RBZ Governor, Dr
John Mangudya has told captains of industry who attended the Zimbabwe
National Chamber of Commerce (ZNCC) breakfast meeting that the central
bank has no capacity to print beyond the limit as the service will be
done outside the country.The exporters’ incentives is set to be funded by bond notes
backed by a US$200 million Afreximbank Nostro Stabilisation and Export
Finance Facility.

Dr Mangudya, who bemoaned the illicit
financial flows and lack of discipline on the market, clarified to
business that the proposed bond notes are meant to incentivise exporters
in order to boost foreign earnings.

Meanwhile, Dr Mangudya has
announced that there will not be compulsory conversion of export
earnings into other currencies within the basket of currencies as
earlier pronounced.

The development means that exporters can now return the 100% of the export earnings following recommendations from industry.

While
acknowledging the objective to boost export and grow the economy,
industry has appealed for sincerity on the part of the central bank on
ensuring that there is no overregulation of the market.

As part
of the recommendations, business has appealed to the RBZ Governor to
extend the 5% incentive to companies promoting import-substitution.